Saul Let's create a State owned Bank of Qld with the 40 billion Julia was going to waste on broadband.Now with 40 billion as a deposit it could use the fractional reserve system to generate money for the recovery.In fact you will find that very little of the $40 billion wiil be spent.The new money will be created as a tax credit,rather than debt.

Posted by Arjay, Thursday, 20 January 2011 6:36:15 PM

Floods! No worries! Everything is under control.

Our army of Economists, pen on hand, is ready to tell our politicians how to clear the mud, rebuild the houses and refurnish them.

Seeing these people at work will be pure joy.

On a serious note: those of us who have only few notches left on their belts are the ones who will have to tight them further.

Posted by skeptic, Thursday, 20 January 2011 7:05:57 PM

The Author of this byzantine article - for all the good that it causes, will - like the tragic victims of the Qld floods, be in for a rude shock, and sad awakening.

From an Economist stand-point. his agenda, outlined in his essay, is just so much academic gobbledygook, which in these frustrating times of PTSD, trauma and so much personal tragedy, is hardly helpful.

It seems, we have not learned from previous events of cataclysmic disasters involving loss of Life, limb and entire family possessions. The 1974 Floods, Cyclone Tracy, Winifred, Althea, Wanda, Justin etc or the bush-fires, massacres, serial killings, Aust history is replete in. Five years after Tracy, roofs were still under tarps, and the destruction to roads, very much in evidence. In Innisfail, SES colored emergency tarpaulins were left to rot on roofs, 3 years down the track.

All this, despite the very Public Military commitment of Gen Cosgrove ( INTERFET. East Timor ) fame. Much worst, the Insurance Industry, ever true to form, obfuscated, reneged and left many penniless and destitute. The aftermath for so many, is testimony of their tremendous strength, endurance and brilliant fortitude.

In all sincerity, my heart goes out to all of you. Bless you all.

As the recovery stage takes hold, General Mick Slater will have his hands full. Contending with Politicians, vested interst groups, and mountains of red tape, his formidable task is like treading through a proverbial Iraqi IED minefield. He maintains they will get it right first time round and for all his gutsy bravado, it remains to be seen, how he will accomplish this mammoth workload, with an Australian wide, shortage of skilled trade persons, materials and Local Council Rules and Building Regulations. People in Flood Plains, and exposed to aggravating risks, would certainly want to return home and rebuild. Given the stringent conditions Councils impose, it's unlikely there will be any concessions or relaxations, Mike Slater notwithstanding.

Public float of presumably " over subscribed " QNR ( Qld National Rail ) is up for $ 15/17 M in repairs to tracks, railway stock and coal haulage facilities. Over 57 Coal Mines are inundated, depleting the expectant Qld Revenue in billions of $$$. Qld's credit rating of AA+ looks decidedly precarious. The impending Qld Budget will be one of restraint and forbearance. We are in for a rough ride with more pain and less gain, in the offing. More Govt charges, regos, electricity, water, and now possibly an new infrastructure levee.

Aust shares in the ASX are in deep RED. China will have to extend credit, and provide additional support to our RBA, for the long haul.

Having the Asuuie Dollar at parity with the $US greenback is nothing to laud about, despite all the TV Ch hosts, and Finance gurus talking up it's intrinsic value. It is more a hindrance then a bonanza. It may provide cheap fares overseas, but VAT, airport charges, stamp duty ( both ways ) luggage, fuel excise, departure and landing tax, health insurance etc absorbs any perceived gains. Monet spent Overseas, exacerbates a detriment to our Tourist, holiday and employment Industries. Country towns are deprived of income. Retailers are crippled - some never to recover. Mortgage, rents, housing, and exports take a hammering, and our GDP remains out of kilter. Real growth is delusional and stifled. One could be depriving a school leaver, of an apprenticeship, earnings, and a tax burden.

Finally, in reality, the $US Greenback has loss it's inherent value, and prestige, and Obama"s QE2 is facing a gargantuan output gap. The Yuan is NOT appreciating, instead China has posted a 9.8 % growth this quarter - which leads to panicky people buying Gold and Mineral assets, instead of Treasury Bonds. A rapid decline in US living standards, more food stamps, and welfare queues, and in the long

cont..

Posted by dalma, Friday, 21 January 2011 5:18:23 PM

" POVERTY ", in the richest, most powerful Nation in this Universe.Like they say: " God Bless America ".